Letitia James pushes for law to shine light on mandatory-arbitration employers

The Supreme Court handed changed the game with a five-to-four vote Monday that could impact 25 million non-unionized employees — and Public Advocate Letitia James wants to protect those in New York. (Andrew Savulich/New York Daily News)

Businesses that take advantage of a controversial Supreme Court ruling this week and bar workers from bringing class action lawsuits against their employer would have to disclose it in their job ads under legislation proposed by Public Advocate Letitia James.

James, who is running for state attorney general, plans to introduce the bill in the wake of the high court ruling Monday that it's legal for employers to force would-be employees to sign mandatory arbitration clauses. Those clauses require the worker to settle any disputes outside of court, relying on the decision of a private arbitrator.

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The agreements prohibit workers from banding together to sue over pay disputes or discrimination complaint.

Under James' bill, which will be introduced next month, employers in the city would have to say in their job listing if they require the rule as part of a contract new employees must sign.

They would also have to disclose if they make workers sign a non-disparagement agreement, which prohibits an employee from speaking critically about their employer even after they have left the job.

That way, would-be employees would know what they're getting into before they decide whether to apply for the job.

"The country's highest court is giving companies the green light to steal hard-earned wages from tens of millions of workers and continue to sweep systemic harassment and discrimination under the rug," James said. "While the ruling may temporarily deny workers their day in court, it does not prevent local governments from shining a spotlight on companies that would hide behind forced arbitration."

The Supreme Court handed down the decision by a five to four vote Monday, and it could impact 25 million non-unionized employees.

Under the proposed bill, business could face fines of $500 to $1,000 for every job posting they put up without the required information.

Employees are far less likely to win their cases in mandatory arbitration than in the courts, according to a report by the labor-friendly Economic Policy Institute.

Workers prevail in arbitration 21% of the time, which is 59% as often as they win in federal court and 38% as often as they win in state court. The average damage award when an employee does win in arbitration is also smaller.